Written by Cláudio Afonso | info@claudio-afonso.com
Rivian Automotive announced on April 5 that produced a total of 2,553 vehicles in Q1 2022 at its manufacturing facility in Normal, Illinois. The company delivered 1,227 vehicles during the same period being in line with the company’s expectations for the year. Rivian believes it is “well positioned to deliver on the 25,000 annual production guidance provided during its Q4 earnings call on March 10, 2022”. The company recently reported Q4 and Full Year 2021 Earnings where it lowered its production guidance for 2022 and expects now to deliver 25,000 vehicles (down from 40,000).
Recently, RBC analyst Joseph Spak released a client note on Rivian where he expects a stronger Q1 2022 deliveries than the consensus. At the time, the analyst expected the company to reach a weekly production of 320 units in Q1 2022, which means 2,370 vehicles produced during the quarter.
“We note that Visible Alpha consensus 1Q22 deliveries is 1.5k (but based on only 7 inputs). We forecast 1Q22 production is closer to the 2.4k level but assume that ~1 week of production is in transit,” Spak added.
As of March 8, Rivian had 83,000 R1 net preorders in the U.S. and Canada and 100,000 EDV units reserved from Amazon and counts 11,500+ employees. The company has been facing a number of challenges, from production ramp-up to orders cancelled after increasing its prices by 17% and 20%. Rivian announced that has raised the price of its R1T pickup by 17% and R1S SUV by about 20%. Increases in the cost of raw materials, inflationary pressure and the already known chip shortage issue are the reasons for this price increase.
Written by Cláudio Afonso | info@claudio-afonso.com